I 

114TH CONGRESS 

1ST SESSION H. R. 4213 

To amend the Internal Revenue Code of 1986 to make residents of Puerto 

Rico eligible for the earned income tax credit and to provide for equitable 

treatment for residents of Puerto Rico with respect to the refundable 

portion of the child tax credit. 

IN THE HOUSE OF REPRESENTATIVES 

DECEMBER 10, 2015 

Mr. PASCRELL (for himself, Mr. PIERLUISI, Mr. RANGEL, Mr. LARSON of 

Connecticut, and Mr. SERRANO) introduced the following bill; which was 

referred to the Committee on Ways and Means 

A BILL 

To amend the Internal Revenue Code of 1986 to make 

residents of Puerto Rico eligible for the earned income 

tax credit and to provide for equitable treatment for 

residents of Puerto Rico with respect to the refundable 

portion of the child tax credit. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Tax Equity and Pros5 perity for Puerto Rican Families Act of 2015’’. 


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1 SEC. 2. PUERTO RICO RESIDENTS ELIGIBLE FOR EARNED 

2 INCOME TAX CREDIT. 

3 (a) IN GENERAL.—Section 32 of the Internal Rev4 enue Code of 1986 (relating to earned income) is amended 

5 by adding at the end the following new subsection: 

6 ‘‘(n) RESIDENTS OF PUERTO RICO.— 

7 ‘‘(1) IN GENERAL.—In the case of residents of 

8 Puerto Rico— 

9 ‘‘(A) the United States shall be treated as 

10 including Puerto Rico for purposes of sub11 sections (c)(1)(A)(ii)(I) and (c)(3)(C), 

12 ‘‘(B) subsection (c)(1)(D) shall not apply 

13 to nonresident alien individuals who are resi14 dents of Puerto Rico, 

15 ‘‘(C) adjusted gross income and gross in16 come shall be computed without regard to sec17 tion 933 for purposes of subsections (a)(2)(B) 

18 and (c)(2)(A)(i), 

19 ‘‘(D) subsection (c)(1)(A)(ii)(II) shall be 

20 applied by substituting ‘age 21’ for ‘age 25’, 

21 and 

22 ‘‘(E) notwithstanding subsection (b)— 

23 ‘‘(i) the credit percentage is 40, 

24 ‘‘(ii) the phaseout percentage is 21.06, 

25 ‘‘(iii) the earned income amount is 

26 $8,890, and 


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1 ‘‘(iv) the phaseout amount is $11,610 

2 (increased by $3,000 in the case of a joint 

3 return). 

4 ‘‘(2) INFLATION ADJUSTMENT.—Subsection (j) 

5 shall apply to the dollar amounts in subparagraph 

6 (D), determined by treating the $8,890 and $11,610 

7 amounts as though such amounts were contained in 

8 subsection (b)(2)(A) and by treating the $3,000 

9 amount as though such amount were contained in 

10 subsection (b)(2)(B)(iii).’’. 

11 (b) CHILD TAX CREDIT NOT REDUCED.—Subclause 

12 (II) of section 24(d)(1)(B)(ii) of such Code (relating to 

13 child tax credit) is amended by inserting before the period 

14 ‘‘(determined without regard to section 32(n) in the case 

15 of residents of Puerto Rico)’’. 

16 (c) EFFECTIVE DATE.—The amendments made by 

17 this section shall apply to taxable years beginning after 

18 December 31, 2015. 

19 SEC. 3. EQUITABLE TREATMENT FOR RESIDENTS OF PUER20 TO RICO WITH RESPECT TO THE REFUND21 ABLE PORTION OF THE CHILD TAX CREDIT. 

22 (a) IN GENERAL.—Section 24(d)(1) of the Internal 

23 Revenue Code of 1986 is amended by inserting ‘‘or section 

24 933’’ after ‘‘section 112’’. 


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1 (b) EFFECTIVE DATE.—The amendment made by 

2 subsection (a) shall apply to taxable years beginning after 

3 December 31, 2015. 

Æ 


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